Employee Draw Agreement

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									An employee draw agreement is used to clearly define the financial expectations
between an employee and an employer when compensation is based on performance
(usually sales commissions). The amount of the draw is the amount an employee
receives each month before the sales commissions are calculated. This agreement can
be modified to fit the business needs of any employer which provides performance
based compensation, but note that the agreement is still bound by the local labor codes
and laws.
Employee Draw Agreement
An employee draw agreement is used to clearly define the financial
expectations between an employee and an employer when compensation
is based on performance (usually sales commissions). The amount of the
draw is the amount an employee receives each month before the sales
commissions are calculated. Note that the agreement is still bound by the
local labor codes and laws.




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Employee Draw Agreement



Company Name: _________________________________________



Employee Name: ________________________________________

Employee Social Security Number: __________________________

Draw Amount: $_________ per month, minus appropriate withholding and payroll deductions,
to be paid through the Company’s regular payroll. Your draw will be applied against all
commission earnings. Should your employment end for any reason without you having earned
commissions to cover all draw paid to you, you agree to repay the Company for all excess draw,
and for that purpose you consent to a payroll deduction from any compensation due you from the
Company.

Commission %: ______% of the net invoice amount of orders for approved products and
services that you are responsible for generating within your territory and that are shipped,
accepted, and paid in full to the Company during your employment.

Territory: _______________________________________

Your territory is non-exclusive, as sales may also be made to house accounts and through other
employees, representatives, and distributors. The Company reserves the right to exclude from
this commission agreement the house accounts listed on Exhibit A or later designated in writing.

No commission is earned, due or payable under this Agreement unless the Company actually
receives payment during your employment on orders you are responsible for generating. Upon
termination of employment for any reason, you will be entitled to commissions only for such
orders that are actually paid to the Company on or before your termination date [or, within ___
days after your termination date.



I, the undersigned Employee, agree to the terms stated in this letter.

                                                                      Dated:

Employee’s Signature: _____________________________________________________

.




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